I was running a trading firm by name Wintech Medica as a partnership firm. We got a CC and term loan from SBI to the tune of 43 lakhs after giving my house as security. The Company ran into lots of financial and other problems and finally had to close down. All partners went in different way. The account became NPA in 2009. At that time the Bank had shown a total outstanding around 40 Lakhs.
Eventually my house was auctioned by the Bank for 27.5 lakhs in the year 2011. Since the I had moved on with my life with great difficulty. This year only I have got a steady job. But suddenly I have received a Demand Notice from DRT Chennai stating that I have to pay outstanding amount of 36.5lakhs and recovery certificate has been issued.
I don't know what to do. I do not have any assets now neither do the partners. We don't have any money to pay now. I just want to know what would be worst scenario and what can be done now.
We didn't receive any notice or order from the Tribunal or the bank before this notice/recovery certificate came few days back. I have been asked to be present before the Recovery Officer on 11.05.2016. Please advice me what can be done or do we just ignore it.
Asked in Property Law from Chennai, Tamil Nadu
1) you should appear before the recovery officer .
2) the firm and its partners would be required to file an affidavit disclosing their assets
3) you can file appeal against order passed by DRT before DRAT regarding issue of RC for Rs 36.5 lakhs if you so desire
4) contact a local lawyer
1. Since it is secured loan so only assets are liable for attachment and your person would not be put into rigours of law to recover the outstanding amount.
2. I would recommenced you to meet certification officer and brief him with the current scenario.
If you have received notice from DRT Chennai, you have to appear before them either in person or through a lawyer.
Attend the court, get the copy and give your reply based on the circumstances you are undergoing now.
The court can do nothing if you express and prove your inability to repay the outstanding amount.
You certainly cannot afford to ignore it except if you are prepared to embrace the penal and civil consequences which would ensue after your absence. Engage a lawyer to contest the case on merits. You can dispute the valuation done by the bank but failure to turn up personally or through your lawyer will result in an adverse order. In the worst scenario you may be held liable to pay the demanded amount, and sent to civil prison in execution proceedings.
first you should file an indemnity suit against other partners. when property is auctioned its dues cannot be recovered from individual property of the partners. you should contact a good DRT expert lawyer and file representation application.